Author: Armen Grigorian, Managing Partner, Redmount Capital Partners LLC
With limited resources and pressures brought upon by high growth, finance managers of smaller companies face unique challenges when it comes to cash management.
Whether a company is gearing to take on a major customer or integrating a newly acquired company, the need to collect and disburse funds can add to the pressure. Managing cash flows can jeopardize company's stability, hold back its growth, and put stress on its employees.
Implementing the following key strategies can help.
- Manage accounts centrally
- Align bank accounts ownership with the corporate structure
- Optimize structures to fit credit facilities
- Choose the right payment and transfer methods
- Plan to minimize transfer costs such as wires, etc.
- Evaluate options to earn more on idle cash balances
- Centralize collection streams into one global account
- Institute standards for scalability and visibility
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